Takeover battle for Enterprise Oil expected to open next week

Italy's ENI SPA is expected to launch a bid for UK independent Enterprise Oil PLC next week. Meanwhile, Enterprise is believed to be preparing a defense strategy that included a shake-up of North Sea assets and the company's exploration and production strategy.

Feb. 1, 2002

2 min read

By the OGJ Online Staff

LONDON, Feb. 1 -- Italy's ENI SPA is expected to launch a bid for UK independent Enterprise Oil PLC next week.

Meanwhile, analysts predict Enterprise CEO Sam Laidlaw will announce a defense strategy against unwanted bids when the company's 2001 earnings are disclosed Tuesday.

That strategy is believed to include a major shake-up of North Sea assets and exploration and production strategy. Enterprise exploration director Andrew Armour resigned Friday, reportedly because of those changes.

Two weeks ago ENI, Europe's fourth-largest integrated oil company, confirmed that it has substantial cash reserves to finance a takeover program, which could include Enterprise. It has already bought LASMO PLC, another UK independent that once was seen as a potential partner for Enterprise.

CEO Vittorio Mincato has said Enterprise is interesting but is not the only company ENI is investigating (OGJ, Jan. 15, 2002).

Earlier, Enterprise disclosed that another company had approached it late in 2001 regarding a takeover. It did not name the firm (OGJ Online, Jan. 9, 2002).

ENI might not be the only bidder for Enterprise if a competition develops. Royal Dutch/Shell Group and Total Final Elf Group both have said they have cash available for expansion and BG Group PLC would like to bring back some of its former assets into its portfolio.